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CAE Seals $140m Defence Contracts

CAE Inc. has signed four contracts worth $140m that will see the company supply training systems and services around the globe.

CAE, Inc. (TSE:CAE, Mkt cap 3.88B, P/E 22.01, Div/yield 0.06/1.63, EPS 0.67, Shares 263.19M) a Canada-based manufacturer of simulation equipment, has signed four contracts that will see the company supply training systems and services around the globe. The contracts have an aggregate value of over $140 million, the company said on its website.

One of the customers is the United States Navy, which has ordered four P-8A simulators in a deal through Boeing Co. The equipment is intended to support the Navy’s expansion of its long-range anti-submarine warfare aircraft.

CAE Inc. has signed four contracts worth $140m that will see the company supply training systems and services around the globe.

The Montreal-based firm will also sell an SW-4 helicopter full-flight simulator to the Polish Air Force School in Deblin, Poland. The simulator for the multi-role light utility helicopter will be delivered in 2016 to assist the Polish Air Force’s training program for air force cadets. CAE considers Poland to be a promising market offering a variety of opportunities for simulation-based solutions, according to its group president for defence and security, Gene Colabatistto.

CAE has also been contracted to deliver on-site services to support the flight simulation activities of the German Air Force. This deal includes maintenance and logistics support for the German Forces’ Tornado, C-160 Transall, P-3C Orion and Mk-41 Sea King flight simulators, as well as its pilot selection system.

A separate order came from Malaysia’s PWN Excellence Sdn Bhd (PWN), an Authorized Synthetic Training Centre for AgustaWestland, which has a CAE 3000 Series AW139 full-flight simulator installed on its premises. This contract will see CAE providing lifecycle support and maintenance services for the simulator over the next ten years.

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